Question

Prescott Bank offers you a five-year loan for $53,000 at an annual interest rate of 7.75 percent. What will your annual loan payment be

Answer 1

$13,186.84

Step-by-step explanation:

Use the Time Value of Money Techniques to Solve the Problem

Pv = $53,000

N = 5

i = 7.75 %

Fv = $ 0

P/yr = 1

Pmt = ?

Using a Financial Calculator, the annual loan payment (Pmt) is $13,186.84.